Jefferies Analysts Out With Top Stock Picks Before Global Tech Conference

Technology

Published: May 8, 2018 8:30 am

Last Updated: January 11, 2020 11:57 pm

With summer right around the corner, so is the annual Wall Street conference schedule, as the warm summer days and nights are much preferable to attendees than the snow and cold in the winter.

This week, Jefferies helps to kick off the season with the firm’s annual Global Technology conference that is being held May 9 and 10 in Beverly Hills, California. This very popular event should see big attendance, with most of the top tech companies in the industry there.

In a new research report previewing the conference, Jefferies analysts showcase their top picks in front of the conference. Nine companies are highlighted and all are rated Buy at Jefferies.

It is important to note that often catalysts come out of the conferences, so it can make sense to buy shares in front of the presentations.

Activision Blizzard

This is a top pick across Wall Street and Jefferies remains very positive on it. Activision Blizzard Inc. (NASDAQ: ATVI) develops and publishes online, personal computer (PC), video game console, handheld, mobile and tablet games worldwide. The company develops and publishes interactive entertainment software products through retail channels or digital downloads and downloadable content to a range of gamers.

Activision Blizzard shareholders are paid a small 0.51% dividend. The Jefferies price target for the shares is $86, and the Wall Street consensus target is $76.36. The stock closed Monday at $70.37 per share.

Adobe Systems

This high-profile old-school software company has posted outstanding earnings. Adobe Systems Inc. (NASDAQ: ADBE) operates in three segments. The Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote and monetize their digital content. The other segments are Digital Marketing and Print and Publishing.

Top Wall Street analysts see the company benefiting from artificial intelligence, predictive analytics, automation bots, speech recognition and natural language processing and image recognition. Some on Wall Street see earnings per share increasing a solid 30% or more for 2018.

The Jefferies team feels the company deserves a premium multiple to its peers due to Adobe’s strong competitive position in the creative space and above-average growth prospects.

Jefferies has a $265 price target for the shares, and the posted consensus target is $248.31. The stock closed most recently at $230.99 a share.